Goldilocks: A Credit Fairytale?

Perspectives Content Submission

Mon, 22 Apr 2013

With interest rates and monetary policy locked in for the near term and fiscal policy uncertainties expected to persist, our top-down 2013 outlook is for a low-growth, low inflation economic environment. We believe this “Goldilocks” environment — which is neither “too hot” nor “too cold” — could be…

Although theFed is likely to keep policy very loose through the end of the year, the unprecedented nature of the intervention means we can't tell what the disruption to financial markets will be when theFed pulls back, says Western Asset's Steve Walsh.